Canada can produce 30 computers for every car it produces,and Japan can produce 15 computers for every car it produces.Based on this information,which statement is INCORRECT?

Question

Quizplus · Accepted Answer

The statement "Japan has an absolute advantage in car production" is incorrect. Absolute advantage refers to a country's ability to produce a good or service using fewer resources than another country, and it does not take into account the opportunity cost of producing one good versus another. In this case, while Japan can produce more cars per unit of resources than Canada, it gives up more computer production to do so. Therefore, Japan has a comparative advantage in computer production, not an absolute advantage in car production.

Canada Can Produce 30 Computers for Every Car It Produces,and